UBS ETF (LU) Sustainable Development Bank Bonds UCITS ETF (USD) A-dis

Issuer: UBS

Asset Class: Fixed Income

TER: 15bps

Trading Currency: GBX

Pays Income: False

Listing Date: 15 Nov 2018

Ticker: MDBU

ISIN: LU1852212965

This investment vehicle offers exposure to high-quality, fixed-income securities issued by Multilateral Development Banks (MDBs). It focuses on bonds from institutions like the World Bank, European Investment Bank, and other similar entities dedicated to financing social and economic development projects, particularly in emerging countries. The portfolio is composed of globally-diversified, investment-grade bonds, providing a stable and relatively low-risk profile. The strategy is centered on physical replication, meaning the fund holds the actual bonds that constitute its underlying index, ensuring direct exposure to these specific assets.

Investing in this fund serves a dual purpose: achieving financial returns while supporting positive global impact. The bonds held are typically highly rated (AA/AAA), offering a defensive component to a portfolio with lower credit risk compared to corporate bonds. Furthermore, the fund aligns with Environmental, Social, and Governance (ESG) principles, specifically targeting the "Social" aspect by channeling capital towards projects that aim to reduce poverty and promote shared prosperity. This makes it an attractive option for investors looking to integrate sustainability and impact objectives into their fixed-income allocation without sacrificing credit quality.

This product can be used as a core holding within a diversified fixed-income portfolio, acting as a substitute for traditional government or high-grade corporate bond exposure. Its focus on highly-rated, supranational issuers provides a unique source of diversification and stability, particularly during periods of market volatility. For socially conscious investors, it offers a transparent and efficient way to support sustainable development initiatives globally. The distributing share class structure also provides a potential source of regular income, making it suitable for those seeking yield from a responsible investment framework.